Highmark teams up to lower outpatient generic drug costs

February 1, 2020

Highmark announced it is a founding member of a new subsidiary designed to ensure that Highmark insurance members continue to have access to affordable generic prescription drugs in outpatient settings.

This new subsidiary of Civica Rx, a nonprofit generic drug manufacturer, will create value for consumers by producing select high-cost generic medications at a more affordable price.

Highmark, along with 17 other Blue Cross Blue Shield organizations across the U.S. and the Federal Employee Program, created the subsidiary of Civica Rx in response to an increasing number of shortages and price increases for outpatient generic medications.

“Over the past few years, overall drug prices have continued to rise. Generic drugs, which have historically offered a more cost-effective option for consumers, have also been impacted by these market dynamics,” said Sarah Marchè, senior vice president of pharmacy services for Highmark. “Decreased market competition in generic drug manufacturing has placed a greater financial burden on our health care system and created a barrier to better health for our members. We are proud to be a founding member of this new nonprofit Civica Rx subsidiary, which will help ensure a steady supply of outpatient generic drugs and lower costs for our members.”

The new Civica Rx subsidiary will produce select outpatient generic drugs and make them available in the market by early 2022, helping maintain accessibility and affordability for members who need them.

Civica Rx was founded in 2018 by three philanthropies and a variety of health systems from across the U.S., with the initial goal of stabilizing the supply and cost of generic drugs in hospital settings. Allegheny Health Network, a Highmark Health organization, was a founding member of Civica Rx’s hospital-focused initiative.